This street was created in 1889 as part of the Commercial Street Steam Motor Addition to the City of Seattle. It appears to have been named for Padilla Bay, which lies between Guemes and Fidalgo Islands and the mainland and is about 60 miles northwest of Seattle, as S Orcas Street appears to honor Orcas Island and S Fidalgo Street, Fidalgo Island. Like Orcas Island, it was named after Juan Vicente de Güemes Padilla Horcasitas y Aguayo, 2nd Count of Revillagigedo, Viceroy of New Spain, who sent an expedition to explore the area in the early 1790s.

Padilla Place S begins at S Homer Street and goes two blocks southwest to S Fidalgo Street, crossing S Orcas Street on the way.

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